Kraken, the cryptocurrency exchange that has long faced legal battles with the U.S. Securities and Exchange Commission (SEC), announced plans to offer tokenized versions of over 50 U.S. stocks and ETFs, including Apple, Tesla, and Nvidia, exclusively to customers outside the United States. The tokens will be issued on the Solana blockchain through a partnership with Backed, a company specializing in blockchain-based financial assets.
The new product, named xStocks, will allow users to trade these tokenized equities 24/7, mimicking the round-the-clock accessibility of cryptocurrencies like Bitcoin. This offering aims to blend the liquidity and accessibility of crypto with traditional stock market exposure, providing a new way for international investors to access U.S. equities.
Current U.S. Trading Options and Regulatory Landscape
Kraken already operates a traditional brokerage platform in the U.S. that offers access to more than 11,000 stocks and ETFs but remains a private company. The SEC, particularly during the Trump administration, softened its regulatory stance on crypto lawsuits, including those involving Kraken.
Binance briefly attempted tokenizing equities in 2021 but halted operations following regulatory pushback. Meanwhile, other financial firms like Robinhood and BlackRock are actively exploring asset tokenization, signaling growing institutional interest in this space.
What The Author Thinks
Allowing tokenized stock trading beyond the U.S. opens new doors for global investors, particularly in markets where access to traditional equity markets is limited. While regulatory clarity remains a hurdle, initiatives like Kraken’s xStocks represent a meaningful step toward integrating blockchain technology with conventional finance, potentially reshaping how individuals engage with equities worldwide.
